Last Updated on July 20, 2023 by Tree of Wealth

Critical illness coverage is a specific form of insurance that provides a one-time payment when the insured is diagnosed with a major disease like cancer, stroke, or a heart attack.

An article in The Straits Times referenced a Life Insurance Association (LIA) survey, suggesting that the typical Singaporean has an average critical illness coverage shortfall of S$256,000. This sum represents the potential income loss due to an enforced break from work for recuperation, underlining the necessity of integrating critical illness insurance into your personal insurance planning.

As Singapore’s population gets older, the likelihood of encountering severe health conditions rises, making critical illness coverage more indispensable than ever.

In the face of critical illnesses, such insurance can act as a financial buffer for a household, taking care of expenses including alternative medical care, sustenance, transportation, home modifications, and additional medical costs tied to the illness. This allows the patient to concentrate solely on their wellbeing and recovery, without the extra worry of monetary constraints.

In this article we seek to underline key reasons for the indispensable nature of critical illness insurance and a comparison on the competitive solutions thereafter.

Cancer Treatment and Medical Costs

In September 2022, the Ministry of Health (MOH) announced revisions to the outpatient Cancer Drug Treatment coverage to curb the soaring expense of cancer treatment. These changes are slated to be effective from 1st April 2023, applicable upon renewal of medical insurance policies.

Under the new policy, a set of clinically tested and cost-efficient outpatient drug treatments will be claimable under Medishield Life. It is projected that a minor fraction of patients may discover that their ongoing treatment is no longer eligible for a claim, or the claim limit may be reduced with zero subsidies if their existing drug doesn’t fall within the covered list.

Critical illness coverage can bridge the gaps in your health insurance and extend financial aid when you need it the most. Since the insurance provides a one-time payment on the diagnosis of a major illness, it can assist you in managing your medical bills, paying for extra treatments or therapies, and covering other related expenses. The financial stability offered by critical illness insurance can allow you and your family to concentrate on recovery without the stress of financial hardships.

It’s crucial to understand the boundaries of your current medical insurance and supplement it with critical illness insurance to ensure that you are comprehensively protected in the event of a serious disease like cancer.

Aging Population

In Singapore, the growing elderly population has contributed to an increase in the occurrence of critical illnesses. The healthcare costs for treating these diseases can be hefty, and critical illness insurance helps bear these expenses and recoup lost income from prolonged periods away from work.

Hence, both critical illness insurance and term life insurance are critical coverage solutions for the aging population in Singapore. They offer financial security against the manifold challenges that accompany aging, including serious health conditions and mortality.

Rise of Critical Illness Coverage

Since the 1960s, Singapore has seen a steady rise in life expectancy. However, this longevity comes with its own set of challenges, including a heightened risk of health conditions such as age-related diseases, cardiac complications, and cancer.

In light of this, seeking financial protection via critical illness insurance can serve not only as a substitute for lost income but also as a potential funding source for alternative medical treatments not included in Integrated Shield plans when health crises occur. A fascinating tidbit about critical illness insurance is that it was conceptualized by South African doctor Marius Barnard, who witnessed firsthand the financial struggles his patients faced after recovering from critical illnesses.

Critical illnesses span from early to intermediate and severe stages. Owing to progress in medical science, the likelihood of a positive outcome post critical illness diagnosis has been on an upward trend. As a result, multi-payout critical illness plans have become a popular choice among those seeking holistic coverage for critical illnesses. The ability to provide multiple payouts is particularly beneficial in case of long-term illnesses that might recur over time.

Comparison of Singlife Aviva My Multipay CI IV Vs Tokio Marine MultiCare

	Singlife Multipay Critical Illness	Tokio Marine MultiCare
Maximum Sum Assured	$250,000	$350,000
Maximum Sum Claimable	900%	900%
Max First Early Stage CI Lump Sum Payout	$250,000	$350,000
Max First Intermediate Stage CI Lump Sum Payout	$250,000	$350,000
Max Advance Stage CI Lump Sum	300% of Sum Assured	300% of Sum Assured
Juvenile Conditions Covered	11 Juvenile Conditions 20% of the sum assured capped at S$25,000 A maximum of 6 claims can be made	10 juvenile conditions 20% of sum assured, capped at $25,000 A maximum of 5 claims
Special Conditions Covered	16 Special Conditions 20% of the sum assured capped at S$25,000 A maximum of 6 claims can be	10 Special Conditions 20% of sum assured, capped at $25,000 A maximum of 5 claims
Waiting Period for a Separate Early/Intermediate CI Claim	1 year waiting period	No waiting period
Waiting Period from Early/ Intermediate to Advance Stage CI Claim	No Waiting Period and will pay up to 300% of Sum Assured less any payouts from previous layer	No Waiting Period and will pay up to 300% of Sum Assured less any payouts from previous layer
Waiting Period for Recurrent Cancer/Heart Attack/Stroke	2 years afterwards 2x 150% sum assured per claim	2 years afterwards 2x 100% sum assured per claim
Unique feature	No Waiting Period for Similar CI Condition or Different CI Condition which progresses from Early to Advance Stage Advance Care Option (Additional 100% Sum Assured Payout) Intensive Care Benefit Benign & Borderline Malignant Tumour Benefit	No Waiting Period for Separate Early/Intermediate Stage CI Claim from different Pot Diagnosis

Read Full Comparison Here

Best Early Stage Multiple Pay Critical Illness Plan Singapore 2023

Both the Tokio Marine MultiCare and Singlife Aviva Multipay Critical Illness plan offer substantial benefits and cater to different needs. It’s essential to remember that the right insurance plan can significantly ease financial stress during challenging times, providing both protection and peace of mind.

Should you require further assistance in selecting the optimal critical illness coverage to safeguard your future, don’t hesitate to contact our skilled financial advisors. They stand ready to guide you through the intricate aspects of financial planning, ensuring that you make the best decisions to secure your future.